Special Publication SP-43-R

CHRIS
CHRISGASTON
GASTON
DAVID
DAVIDCOHEN
COHEN
IVAN EASTIN
DAVID
FELL

2010 Edition

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Special Publication SP-43-R (2009)

ISSN # 1916-4238

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CHRIS GASTON
DAVID COHEN
IVAN EASTIN

Special Publication SP-43-R (2009)

ISSN # 1916-4238

TABLE OF CONTENTS

Encouraging the use of domestic wood

..........................................................................................................

Bipolar demographic 1: the aged and defensive housing

..........................................................................................................

Bipolar demographic 2: the rise of echo boomers (Dankai Juniors)

...........................................................................................................

Green building and healthy housing

...........................................................................................................

11

Increased regulations for housing (performance & durability)

...........................................................................................................

13

Western-style platform-frame housing remains strong

..........................................................................................................

15

Continued growth in use of engineered wood products

...........................................................................................................

17

Hybrid construction becomes established

.........................................................................................................

20

Japans changing timber supply

.........................................................................................................

22

Introduction

Highlighting the
significant changes
that we have seen in
wood used and supply
in Japan in the past
four years.

Two editions of Wood Market Trends in Japan have been published to date, 2000
and 2006. The trends discussed in this report (new or updated trends previously
identified) highlight the significant changes in the past few years that we have seen
in wood use and the wood supply in Japan.
As an introduction to these most recent trends, we introduce an overview of change
from the two previous editions.

From 2000
Purchasing power of Japanese Yen is increasing
Yen has remained strong but the purchasing power of Japanese consumers has
declined due to real estate devaluation and more than a decade of slow growth
Kobe Earthquake drives interest in home performance
Reflected in constantly changing building regulations
Japans aging population stimulates healthy house
Responding to consumer demand increasingly stringent regulations regarding offgassing in new houses as well as strong 10-year guarantees
Japan embraces NA platform-frame home construction
2x4 continues to grow and has expanded into town houses and low-rise apartments
Japan post & beam home construction moves to engineered wood products
Engineered wood products now dominate structural members in post & beam
construction
Japan experiments with a hybrid construction style
Both post & beam and 2x4 now use exterior sheathing (or cross bracing), engineered
wood products, and similar designs it is difficult to tell what structural system
was used in a new finished house today in Japan
Government of Japans desire to reduce home costs
House costs have declined substantially
Revision to Building Standard Law drives performance
Continuing changes drive higher performance standards
Secondary wood product demand changes
More and more secondary wood products are imported, often from China
Wood product trade becomes more global
Not only in Japan but in all importing regions

From 2006
Japan remains a major wood importing region
Still true even during the global economic downturn
Increased demand for housing performance and longevity
New requirements in 2009 for 200-year house and insured 10-year performance
guarantees
Western style housing remains strong
Even post & beam houses are now predominantly western styles
Growth in pre-cut drives shift to kiln dried lumber
KD lumber (and EWP) dominate wood construction materials
Hybrid construction becomes established
Hybrid now well established
Aging population and increased interest in healthy house
Healthy house now being legislated through off-gassing restrictions
(e.g., formaldehyde)
Increased diversity in housing styles
Increased construction of town houses and low-rise wood apartments in more
suburban and rural areas
Home repair (R&R) increases dramatically
Some increase but not sufficient to meet current needs, especially in apartments
in urban centres
Japanese become price sensitive
Japanese are now very price sensitive although they do seek value
The emergence of power builders
Power builders peaked due to finite supply of land for infill housing replaced by low
cost builders of both apartments (often on farmers land) and house developments in
suburban and more rural areas

T
R
E
N
D

Japan encourages
not only the increased
use of domestic
species but also
increased domestic
manufacturing of
imported logs.

Encouraging the
use of domestic
wood
Japan is accelerating efforts to increase the use of domestic wood at the expense of
imported supplies. During the past several years, wood use has declined due to reduced housing starts and declining area per house, while the use of domestic wood
has remained stable. Imports have declined resulting in a greater share for domestic
logs. Recent efforts are using stimulus packages to counter the recession along with
new green efforts to encourage increased domestic production and use of domestic
wood. Japan encourages not only the increased use of domestic species but also
increased domestic manufacturing of imported logs.

Supply of Logs in Japan (in million m3)

From Japan Lumber Journal

Vol. 50 Issue 11 page 1

Year

Total

Domestic
Logs

Imported
Logs

Domestic
Log Share

2004

30.9

15.6

15.2

50.6%

2005

29.0

16.2

12.9

55.7%

2006

29.4

16.6

12.8

56.4%

2007

28.8

17.7

11.1

61.3%

2008

26.0

17.7

8.3

68.0%

Drivers
There are numerous reasons that national and local governments are promoting the
increased use of domestic wood. They include:
A need to repopulate rural areas with younger people to prevent the elderly from moving to urban centres. One interviewee in 2009 referred to
a newspaper article that stated that during the last earthquake there were
no young people around to rescue the elderly in some rural areas. This
may be rural myth but the perception persists.
Forests have been planted with a high number of stems per hectare and
for forest health, it is necessary to thin them. Promoting commercial
thinning provides environmental and social benefits for forests and rural
communities. It also provides employment for many of the young recently
unemployed temporary workers.
Existing government policy promotes increased use of domestic species
for carbon balancing (driven by Kyoto obligations) and to clean up the
forest area.
3

Many prefectures are

offering tax rebates
or cash incentives if
a certain proportion
of the wood used in
housing comes from
within the prefecture.

Results
Japan is using social, environmental and economic levers all along the value chain
to ensure increased use of domestic wood. Some of the recently implemented policies are noted below.
In June 2009 the government passed legislation to encourage 200-year houses by
ensuring that builders use the right products and materials with a good plan and
design (e.g.; designed for ease of renovation). As with many laws in Japan, the details
are hazy and will be developed by the appropriate bureaucrats during implementation.
Domestic woods are considered more durable than imported species and will provide
builders with a durability credit that will help a house be certified as long-term,
excellent housing. This leads to benefits such as tax rebates and mortgages with
both longer terms (up to 50 years) and reduced interest rates. While there is little
scientific evidence that domestic species are more durable than imported species,
in non-tariff barriers such as these the science is often at the discretion of the policy
makers (e.g.; the Pinewood Nematode barrier erected by Europe in the nineties).
Builders are switching to domestic wood to increase their customer base and to be
able to charge more for the houses that qualify.
There are numerous other incentives at both the local (prefecture) and national level.
Many prefectures are offering tax rebates or cash incentives if a certain proportion
of the wood used in housing comes from within the prefecture. As part of Japans
current stimulus package, funds are available for up-front capital investment to
cover 50% of capital costs There are also funds available for training people on the
new equipment so there is assistance for both equipment and labour costs. Wood
processing companies are encouraged to apply for these funds. The government has
encouraged and assisted in the creation of nine enterprises that link log suppliers,
manufacturing plants and house building companies to promote the increased use of
domestic wood. Seven of these are still in existence but are having trouble becoming
profitable, often due to erratic log supply.

Lattice made from green sugi used for cross bracing on Post & Beam house.

Much of the plywood is now produced domestically with Sugi, the domestic species
with the greatest supply, used for core and Russian larch used for top and bottom
face panels. Research is ongoing aimed at replacing imported larch with wood from
Hokkaido but wood quality issues persist.
The table below illustrates the change in domestic lumber production and lumber
imports as a result of domestic market share in P&B segment increasing from 30%
to 50% (m3).

Domestic Lumber Production and Lumber Imports

Eastin, Ivan 2008 Review

of the Japanese Green
Building Program and the
Domestic Wood Program.
Cintrafor Working Paper 111.
University of Washington

Year

Domestic

Base Case Imported

2006

1,765,542

4,119,599

2007

1,896,323

3,988,818

2008

2,027,104

3,858,037

2009

2,157,885

3,727,256

2010

2,288,666

3,596,475

2011

2,419,447

3,465,694

2012

2,550,228

3,334,914

2013

2,681,009

3,204,133

2014

2,811,790

3,073,352

2015

2,942,571

2,942,571

NOTE: base case has domestic P&B housing starts constant at 2006 levels (432,731).

Cut to size domestically produced plywood.

T
R
E
N
D

Bipolar demographic 1:
the aged and
defensive housing

By 2030 the
proportion of
Japanese 65
and older will
surpass 31% of
the population.

Changes in Japans population have had, and will continue to have, a major impact
on housing demand in Japan, both in terms of numbers and styles. There are two
distinct but powerful demographic segments affecting current and future housing
demand. The first is the rapidly aging population born after the Second World War
often referred to as baby boomers. The second is their children who make up
a large proportion of first-time home buyers referred to as the echo boomers
or Dankai Juniors. Each segment has very different impacts on housing, and thus
demand for wood products in Japan.
The population in Japan is declining due to low birth rates and strict immigration
policies. With lifetime fertility now below 1.3 children per female (the replacement
rate being about 2.1), Japan is behind only Russia in terms of projected population
decline and represents the demographic future of many European countries such
as Germany.

Japanese Population
Pyramid 2010
(total pop. 127,176,000)
Male
Female

80+
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-40

80+
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-40

boomers

echo boomers

The declining population is expected to reduce overall housing starts. However the
projections of the government may be optimistic since the current generation of
houses are expected to increase the average lifespan of houses and may reduce the
need for replacement housing.

Future Housing Starts (MLIT)

Period

Increase/
Decrease

Surplus
Units

2001-05

Economist
May 8 2009.

Replacement
Units

5 Year
Average

Yearly
Average

5,818,859

1,163,772

64.7%

2006-10

1,165,132

297,640

3,828,806

5,291,578

1,058,316

2011-15

642,474

291,865

3,860,024

4,794,363

958,873

2016-20

-46,339

288,932

3,875,177

4,117,711

823,554

Some of the characteristics of the elderly Japanese population include:

An average age of 61 years (however retirement in Japan is 60 with usually
10 additional years at lower salary and responsibility)
They have been buffeted by a decade of a stagnating economy (1997-2007)
followed by a steep recession which has led them to adopt a defensive
lifestyle
They have low investment income due to very low interest rates in Japan
and a strong Yen
According to the life-cycle hypothesis (i.e.; smoothing consumption
over lifetime with higher expenditures in young and old households representing raising young children and living with no work income) they are
entering a high consumption period but without the resources to support
themselves
They are more interested in defensive lifestyles to protect their health, their
wealth and their comfort as they age
Look towards their children to help them age in place since there is a lack
of cultural acceptance of institutions for the aged
They are aging in place, have wealth but are retiring and conserving savings; with spending on health care, security and preventive medicine
They own much of the land, housing and stocks (similar to other developed countries) but with insufficient social support for the elderly and
many years to live they save this in safe investments that pay little interest.
Although they control much of the wealth in Japan, there is little transfer
to their children, the echo boomers due to perceived future needs and
existing laws that tax these transfers.
In terms of housing they:
focus on healthy houses with good indoor air quality, easy access and high
levels of security and safety
constitute the segment that rebuilds mid- to high-end houses
are still steeped in tradition although they are abandoning the traditional
Japanese room (where high-end wood is used)
are more cost conscious than in the past and want quality without a
willingness to pay for it
are living in smaller units or multi-generational housing and having one
of their children provide care as they age.

T
R
E
N
D

Dankai Juniors
are now the core
of Japanese
culture and are
more westernized
than previous
generations.

Bipolar demographic 2:
the rise of the echo boomers
(Dankai Juniors)
The echo boomers are the children of the baby boomers and aged 29 to 44 in
2009. This group, classified as the Echo Boomer Cohort is based on the smaller
Dankai Juniors group born from 1973 to 1979 and comprises 13% of Japans
declining population. The behaviours of this sizeable first-time homebuyer segment
are becoming increasingly important both as first-time homebuyers and as the future
recipients of the wealth accumulated by their parents during the economic growth
of Japan. They affect current and future trends for housing, particularly in urban
Japan. They are now the core of Japanese culture and are more westernized than
previous generations.
Some characteristics of this group include:
Parents who have a long life ahead of them limiting any short-term wealth
transfer so they are looking for low-cost built for sale housing as they form
their families
Many have a more western or global upbringing and have much more
tolerance for imperfections in materials (such as knots, wane and other
defects) but will not tolerate poor performance (e.g., structural)
Research has shown that this group is very concerned about environmental
issues but are ignorant of them and are often not willing to make lifestyle
changes for environmental purposes
Uninterested in structural material or whether house is built using traditional post & beam technique or using 2x4 platform-frame technique.

Many do not have the luxury of lifetime employment guarantees, or the traditional
twice yearly bonuses often used to purchase durable goods, so they are very cost
conscious with little desire for quality over cost. Thus they will accept smaller
houses on smaller lots (e.g., infill) especially since they expect to have 2 or less children. This demographic contains many of the temporary workers that are newly
unemployed due to the recession and that are being targeted by the government to
develop skills to work in rural settings, e.g., agriculture, forestry (driver for domestic industry support). It is the economic plight of this group that has contributed
to the decline in the household saving rates to only 1% while in the US this has
increased to over 5%.
Recent research on this group has found the following:
Very concerned about the environment but not very knowledgeable
(e.g., knew little of wood certification)
The living room, hallway & entrance are the preferred locations to use
imported wood
Top finished wood products from NA are flooring, cabinets, doors and
windows
Preferred attributes for finished wood products were aesthetics, pricing,
workability and steady supply
Preference toward domestically produced materials and products (nationalistic purchasing preference)
Two-thirds prefer a detached house with half wanting to live downtown
and another 40 in suburbia with only 9% noting rural living
Key drivers to purchase a first home are finding the right property, saving
enough funds, marriage, and accessing preferred school for children
Key concerns were safe neighbourhood, near transport, shopping, school
and work.

10

T
R
E
N
D

Green building has

been developed by
government and is
being pushed on
to the public. This
is in stark contrast
to the consumer
driven demand for
healthier housing
in Japan.

Green building
and healthy housing

Green building
While there has been an increase in consumer concern over the environment, the
agenda to address these concerns in terms of housing has been developed by government and is being pushed on to the public. Efforts are under way that will have
a substantial impact on housing in Japan. This is in stark contrast to the consumer
driven demand for healthier housing. In Japan, environmental efficiency is an overarching criteria that is defined as Quality of Life / Environmental Loading. The
healthy housing concerns tend to focus on quality of life issues while green building
focuses on the environmental loading.
Many are familiar with the NA green building programs such as LEED (Leadership
in Energy and Environmental Design), Green Globes and/or the NAHB program.
In Europe there are programs such as BREEAM (Building Research Establishment
Environmental Assessment Method) or passive housing. Japan has developed its own
green building system called the Comprehensive Assessment System for Building
Environmental Efficiency or CASBEE (http://www.ibec.or.jp/CASBEE/english/
overviewE.htm).
Recent reports indicate that this system is not based on a comprehensive life cycle
inventory and incorporates an environmental advantage to domestically produced
wood that is not supported by science. For example, all Japanese wood is considered to be managed sustainably despite the lack of transparent independent third
party verification. There are several aspects that favour domestically produced wood
materials and products. Points are awarded for locally harvested wood as well as
for regionally distributed wood ensuring that all wood produced in Japan receives
environmental advantage over all imported alternatives.
In addition, the Japanese Woodmiles Forum has developed a wood miles metric
that quantifies wood transportation distances and their associated CO2 emissions.
While a recent analysis by FPInnovations has illuminated technical errors in their
calculations, the overall result is to provide an environmental advantage to domestically sourced and/or produced wood. This includes a preference for importing logs
and manufacturing wood products over importing the wood products themselves.
This seems to link official green building with increasing use of domestic wood.
The use of green trade barriers and stimulus-based subsidies is not limited to Japan
as exemplified by the current US black liquor subsidy to US based pulp producers
(see http://www.cbc.ca/money/story/2009/05/21/black-liquor-congress.html for
more information).

11

Healthy housing
As part of the defensive housing (Bipolar demographic 1 demand: the aged and
defensive housing) consumers are demanding a healthier indoor environment in
their homes. This concern focuses on indoor air quality (addressed by minimizing
off-gassing from materials and finishes, the use of hard surface floors, etc.), injury
prevention (addressed by wheelchair accessible and designs that accommodate
residential elevators) and improved comfort (addressed by central heating, reduced
drafts, better insulation).

Eco Power is important in promoting housing in Japan.

12

T
R
E
N
D

The market
has moved
toward increased
performance
attributes of building
systems, wood
structural members
and engineered
wood products .

13

Increased regulations
for housing
(performance and durability)

Originally triggered by the Kobe (or Great Hanshin) earthquake of 1995, consumer
demand for improved structural performance and durability in housing has led to
increasing government regulations for residential housing. Some of these changes
are noted in the following table.

Regulation changes
Year

Law

Rationale

2000

Housing Quality
Assurance Law

To improve quality of housing, ensure 10-year

warranty and promote use of nine performance standards

2000

Revised Building Standards Law (BSL)

Bring Post & Beam (P&B) under building

regulations

2003

Amended the
Japanese Building
Standard Code

Restrict formaldehyde emissions for

materials used in houses

2007

Revisions to BSL

Increased permitting required due to structural

calculations scandal

2009

Revision to BSL

Requiring 10 years of insurance for new

house guarantee so owner is covered if
builder goes bankrupt

2009

Law to promote the

spread of long-term
excellent housing

To promote increased longevity of housing

as environmental initiative (200-year house
is goal)

The Japanese have always had a desire for high quality. However, the definition of
quality has changed from an aesthetic definition that required straight tight grain
and uniform light colour to one that focuses on structural strength and long-term
reliability. This new definition of quality had contributed to the increased use of
engineered wood products with their proven performance characteristics. In post-war
Japan, the average life expectancy of the Japanese single-family home has been only
26 years! This is changing dramatically, with research in Japan showing that the life
expectancy of newly built homes has increased to 56 years (Nikkan Mokuzai Shimbun, Wednesday, May 14, 2003). Whether it was the shock of the Kobe earthquake
alone, or a combination of this disaster with other factors such as the disquieting
effect of the Asian Flu on consumer confidence, the market has moved toward
increased performance attributes of building systems, wood structural members and
engineered wood products.

Two of the more recent regulatory changes were discussed in the trend on Encouraging the use of domestic wood. In October 2009, changes to the Building Standards
Law required a 10-year warranty on new houses and the builder being forced to have
insurance so that the warranty will be covered even if the builder goes bankrupt. The
government is ensuring that its own insurance organizations refuse to insure firms that
are not financially stable. This is one reason why the government expects up to 20,000
of the small komuten builders to go bankrupt or be absorbed into larger companies
that can provide the required insurance. This government push for consolidation
continues a trend that equates consolidation with increased housing quality.
The second is the recent legislation that encourages 200-year houses by ensuring
builders follow a good plan with a design that makes renovation easier and uses the
right products and materials for long-term durability. This will impact the selection
of building materials by a variety of carrots and sticks.

Bracing used with plywood roof sheathing in 2009 P&B house for Increased
performance.

14

T
R
E
N
D

Western-style
platform-frame housing
remains strong

Platform-frame (2x4)
residential construction
in Japan includes a
growing number of
apartments which use
less lumber per unit.

Figure F1: Japan Total Housing Starts

Wood and Non-wood
P&B
2x4
Total starts

Many global suppliers of softwood lumber look to Japan as one of the few wood
importing countries outside of North America that builds a significant number of
wooden homes. While this construction is dominated by post & beam architecture
(Figure F1), the number of North American platform-frame (2x4) housing starts
(and the market share) continues to grow (Figure F2) due to continuing promotional
efforts by Canada and the U.S. In addition 2x4 construction in Japan has always
been tightly regulated making it easier for these builders to adapt to increasing
construction regulations.

1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Figure F2: Japan Platform-frame

Housing Starts
2x4
2x4 as a percent of total

25%

1,200,000
1,000,000

20%

800,000

15%

600,000
10%
400,000
5%

200,000

0
1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

15

There have been recent changes to the style of 2x4 residential construction in Japan.
Construction has grown to about 100,000 houses per year in a declining market,
although there has been a shift to 2x4 apartments with occupancy guaranteed by
the builder e.g., Daito Kentaku. Between 50% and 60% of all 2x4 residences are
low-rise multi-unit apartments for rent. Most are six unit townhouses (see photo).
One company (Daito Kentaku) builds 40,000 apartments per year. In many cases,
farmers own the land and build due to tax advantages and occupancy guarantees
from builders. This rental market was the first to switch from using J-grade dimension lumber to a lower quality, lower cost dimension lumber.
This rental housing uses much less wood per unit due to the smaller size with an
estimate of 50 m3 of lumber for all six apartments or only 8 m3 per apartment. This
compares to a typical house that uses 15 to 20 m3 for each unit. In addition they are
built using lower grade lumber. This results in less volume and profit for each unit
of housing built. Some use panelized walls, transferring some of the profit to the
precut facility; this trend is also occurring in single family 2x4 housing in Japan.
One company (Daito Kentaku) is guaranteeing their buildings for 30 years to individual apartment owners. They also manage the apartments after they are built and
guarantee that they will rent out the units for 30 years based on certain percentage
occupancy. Recently the recession has resulted in a credit squeeze for firms with
long-term liability commitments such as guaranteed occupancy. There are rumours
that there is pressure for firms building these apartment to buy Japanese which
may result in a switch to steel structures.
There is no longer any difference between the finished style of wood housing based
on whether a finished house was built using P&B or 2x4, since finished designs are
similar. An emerging trend is the increased use of factory built wall panels and some
pre-cut factories which had exclusively served the P&B market in the past are now
producing wall panels for 2x4 construction, especially apartments.

Six-unit 2x4 wood apartment that represents over half of all 2x4 starts in 2008.

16

T
R
E
N
D

Continued growth
in use of engineered
wood products

The shift to
replacing imported
green products with
kiln dried wood
or domestically
produced green
products is almost
complete.

The vast majority of all post & beam wood construction in Japan now has the structural components, such as posts and beams, pre-cut in a factory and assembled on
site with no cutting or notching at the construction site. The pre-cut facilities use
modern CAD and CAM technology to ensure no waste is created at the construction site. They use either kiln dried or engineered wood products to ensure stability
during and after assembly. The largest pre-cut company in Japan noted the following
in an article in JLJ February 2009:
From 1998 to 2007 European kiln dried timber increased its share at the
expense of NA green timber, and domestic supplies declined from 16% to
8% and then rebounded to 12% (mostly for ground sills)
Between 1998 and 2001 the use of green timber for posts declined from a
70% share to less than 22% and is now in single digits
For beams, green lumber fell from 100% share in 1995 to 25% from 2001
with laminated beams accounting for 41% in 2001 and 83% in 2007
For ground sills green lumber fell from 98% in 1998 to 40% in 2007 with
laminated lumber capturing 48% and KD lumber 12%
Builders consider that green lumber leads to complaints while laminated
lumber makes these complaints disappear resulting in savings that compensate for the 50% price premium of laminated lumber.
Pre-cut factories have expanded and now produce plywood subfloors and roof
sheathing that is cut and notched to ensure that no waste is produced on site. These
factories now produce many of the structural components used in post & beam
houses and are starting to purchase the equipment necessary to manufacture wall
sections for 2x4 houses.
1,600,000

Japan Imports of Laminated

Lumber by Type

1,400,000

Structural

1,200,000

Cubic Metres

Non-structural

1,000,000
800,000
600,000
400,000
200,000

17

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

1,600,000

Japan Imports of Laminated

Lumber by Source

1,400,000

China
Scandinavia

1,200,000

Austria
South Seas
Russia
Canada
Germany
US
Other

1,000,000
Cubic Metres

New Zealand

800,000
600,000
400,000
200,000
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Laminated Lumber in Japan

Structural
Domestic
Production

Structural
Imports

Total
Structural

% domestic

Volume m3

Volume m3

Volume m3

2002

946

516

1,462

64.7%

2003

1,191

541

1,732

68.8%

2004

1,276

611

1,887

67.6%

2005

1,310

671

1,981

66.1%

2006

1,490

806

2,296

64.9%

2007

1,172

642

1,814

64.6%

2008

1,124

404

1,528

73.6%

Recently there have been efforts to develop hybrid laminated beams using KD sugi
in the core and domestically cut Douglas-fir (from imported logs) for the top and
bottom cords. There have been technical problems due to the different characteristics
in use for the two different species but work is ongoing to try to use Japanese sugi
in structural laminated beams. In 2009 there has also been the start of domestic
production of 4-ply and 3-ply posts using KD sugi along with Douglas-fir that is
processed in Japan from imported logs.

18

The shift to replacing imported green products with kiln dried wood or domestically
produced green products is almost complete with just small markets for imported
green wood such as sill plates (dodai) and rafters (taruki). However, the new building regulations should further reduce even these small markets for green wood due
to eco-protectionism and domestically preferential stimulus efforts that promote
domestic wood and restrict opportunities for imported products. The proportion of
domestically produced lumber that is kiln dried ranged from 20 to 25% in the past
five years (JLJ Oct 09).

Kilns at Chugoku, Japan

19

Domestically produced LVL

T
R
E
N
D

H
In terms of
style there is
now little visible
difference between
a completed
traditionally
constructed house
and one built using
the 2x4 method.

Hybrid construction
becomes established

Construction of the traditional post & beam home has changed dramatically over
the past two decades this evolution has turned into a near revolution. The change
has affected both style and construction techniques.
In terms of style there is now little visible difference between a completed traditionally constructed house and one built using the 2x4 method. In terms of style some
of the changes to the traditional post & beam house include:
Design to facilitate renovation (called reform in Japan) in an effort to
increase the longevity of wood houses
Use of western style furniture on finished floors instead of interchangeable
furniture on tatami mats
The predominance of single purpose rooms (e.g., separate living room
and dining room) in larger houses rather than multi-purpose rooms in
smaller houses
Increased use of open design and barrier-free design
The decline of traditional Japanese rooms in new houses.

6-storey 2x4 construction on

top of one-storey steel frame
structure tested on shake and
bake system in Japan

20

However the greatest change has been in construction techniques. Traditional

post & beam construction historically made exclusive use of complex joinery
to connect structural components, as opposed to nails and metal connectors.
Because of price pressures, a lack of master carpenters, and a demand for improved housing performance, pre-cut components and engineered wood products
came into their own. The next step was the emergence of hybrid construction
techniques.
The hybrid building system for traditional wood houses in Japan now essentially
merges the best of post & beam and platform-frame construction techniques.
Some of the changes in post & beam construction include:

Extensive use of metal connectors

that can be used for floor joists

Adding a sheathing material to the exterior shear walls instead of

cross-bracing to offer lateral load resistance for better performance
during earthquakes. Sheathing can be plywood, OSB or some newer
wood-based products
Increased use of metal connectors and hanging braces as a complement
to, or even a replacement for, traditional joinery. This is by far the most
radical departure from traditional post & beam construction
Increased use of panelized construction components ranging from
pre-cut plywood roof and floor sheathing to simple wall framing and
insulation. Both styles of housing are approaching a zero waste policy
on the construction site.
In 2005 the first hybrid building (built in Kanagawa City) was completed with
the first floor built from reinforced concrete and the second through fifth floors
utilizing wood-frame construction technology. Connective posts were fabricated
using plywood and veneer wrapped steel posts that were certified as one-hour
fire resistant. Code allowance exists for mixed material and hybrid structures,
with first (and second) floor steel reinforced cement and up to four additional
floors with wood platform-frame. Close cooperation among Canadian, US, and
Japanese code experts, with industry and government support, resulted in the
adoption of these wood friendly building codes.
Another form of hybrid construction that is expected to increase in Japan is hybrid
buildings that span occupancy types (such as mixing commercial space with residential space) and materials (such as using reinforced concrete for the foundation
and first floor and wood-frame construction for subsequent floors).
Floor beams
supported by
metal joists in
P&B construction

21

T
R
E
N
D

I
There is a
substantial sawmill
industry in Japan
that has been built
to manufacture
a broad range of
lumber products
from secondgrowth Douglasfir logs imported
predominantly from
plantations in the
Pacific Northwest
of the US.

Japans changing
timber supply

Japan has traditionally imported logs from Russia and the US. However Russia
has captured increasing market share in the past decade due to a strengthening US dollar and a decreasing Russian ruble. By 2006 Russia exported almost
six million cubic metres of logs representing almost 50% of all Japanese log
imports. The share for the US and Canada for the same time frame was less than
3 million m3 (24%) and 2.2 million m3 (10%), respectively. However since 2006
the Russian log export tariff has resulted in a rapid decline in log exports
to Japan.

Japan log imports

The Russian log export tax was to escalate starting from January 2007. For softwood logs the tax was to increase from 20% (a minimum of 10 or ~$US 14.50)
on January 1, 2007 to 25% (15) on April 1 2008 to 80% (50) on January 1,
2009. Due to the global recession the final increase has been delayed several
times and the current implementation date is scheduled for early 2011. The final
dramatic increase in taxes will most likely not occur until the global economy
has recovered sufficiently to reinvigorate the flow of foreign direct investment in
the continued development of the wood processing infrastructure within Russia.
A recent trade flow analysis of the impact of the increased Russian log export
tariff on Japanese wood imports found that the 80% log export tax would likely
cause Japanese softwood lumber imports to increase by 163,0000 m3, while
plywood imports would increase by 58,000 m3 and pulpwood would increase
by 22,000 tons.
Recent trade statistics provide clear evidence that the current Russian log export
tariff has already impacted Japanese wood imports. In 2008, Russias market
share of log imports dropped from 47% to 30% while the US share jumped from
24% to 32%, the Canadian share rose from 9% to 12.5% and the New Zealand
share increased from 10.5% to 15.7%. All other suppliers saw their market share
decline in 2008.
There is a substantial sawmill industry in Japan that has been built to manufacture
a broad range of lumber products from second-growth Douglas-fir logs imported
predominantly from plantations in the Pacific Northwest of the US.
However the Japanese economy and home building industry are currently suffering in response to the on-going global recession. In the first half of 2009,
the imports of wood products declined significantly, with log imports down by
22

35% (relative to the first half of 2008) and plywood imports down by 23%. Lumber
imports have been down by a smaller 7%, partly due to the fact that log imports
from Russia have been replaced by imported lumber.
Looking to the future, changes will continue in Japans sourcing of imported wood
products. These changes will be in response to a variety of factors beyond the increasing tariffs on Russian log exports. For example, a substantial volume of the plywood
imported into Japan is sourced from Indonesia which is confronted by declining log
supplies. As a result, it is expected that the domestic production of wood products will
continue to increase, although this increase will remain modest and wood imports
will continue to play a significant role in Japan. As the Japanese economy begins
to recover from the global recession, the Japanese wood processing industry will
increase its imports of non-Russian logs, as well as lumber and other wood products
that can supply secondary wood manufacturers in Japan (e.g., lamstock for Japanese
glulam manufacturers).
800,000

Japan Log Imports

Russia

700,000

Canada

Log Import Volume (cubic metres)

United States

600,000
500,000
400,000
300,000
200,000
100,000
0

1995

1996

1997

Douglas-fir Logs in Hiroshima

23

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Japan Imports of Wood Products

25.0

Wooden Furniture

Wood Continuously Shaped

Veneer Sheets
Lumber
Logs
Wood Fuel

22.5

Billions of Canadian Dollars

Other Wood Products

Builders Joinery
Plywood
Fibreboard & MDF
Particleboard & OSB

20.0
17.5
15.0
12.5
10.0
7.5
5.0
2.5
0.0
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Japan Imports of Softwood Lumber

11,000,000

Other
New Zealand

10,000,000

Romania
United States

9,000,000
8,000,000

Austria

7,000,000

Russia
Scandinavia
Canada

Cubic Metres

Chile

6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Japan POV SW Lumber

600

550

500

$CDN / m3

New Zealand
Romania
United States
Chile
Austria
Russia
Scandinavia
Canada

450

400

350

300

250

200

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Japan Imports of Softwood Lumber

11,000,000

Rough Lumber

10,000,000
9,000,000

Spruce/Fir

8,000,000

Pine
SPF

Cubic Metres

Other
Douglas-fir
Hemlock

7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
1996

1997

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

700
650
600
550
500

$CDN / m3

Rough Lumber
Other
Douglas-fir
Hemlock
Spruce/Fir
Pine
SPF

1995

450
400
350
300
250
200
150
100
50
0
1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Japan Imports of Softwood Logs

Other
New Zealand
Canada

14,000,000

12,000,000

Cubic Metres

Russia
United States

16,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

500

Other
New Zealand
Canada
Russia
United States

450
400

$CDN /

m3

350
300
250
200
150
100
50
0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Japan Imports of Windows and Window Frames

Other

120,000,000

Canada

110,000,000

Indonesia
EU27

100,000,000
90,000,000

United States
Philippines

Canadian Dollars

China

80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009
2009

Japan Imports of Doors and Door Frames

250,000,000
225,000,000
200,000,000

Canadian Dollars

Other
Canada
Thailand
United States
Phillipines
EU27
Malaysia
Indonesia
China

175,000,000
150,000,000
125,000,000
100,000,000
75,000,000
50,000,000
25,000,000
0
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Japan Imports of Laminated Lumber

1,600,000

Structural
Non-Structural

1,400,000

Cubic Metres

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Canada Exports of Wood Products Excluding United States

9.0
8.0

Billions of Canadian Dollars

Other
Tawain
Australia
South Korea
Middle East
China
EU27
Japan

7.0
6.0
5.0
4.0
3.0
2.0
1.0
0
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Canada Exports of Softwood Logs

Other

5,000,000

China

4,500,000

United States
South Korea

4,000,000

Cubic Metres

Japan

3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Canada Exports of Softwood Lumber Excluding United States

9,000,000
8,000,000
7,000,000

Cubic Metres

Other
Taiwan
Australia
South Korea
Middle East
EU27
China
Japan

6,000,000
5,000,000
4,000.000
3,000.000
2,000,000
1,000,000
0
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2009

CHRIS GASTON
DAVID COHEN
IVAN EASTIN

Western Region
2665 East Mall, Vancouver, BC V6T 1W5
Tel: (604) 224-3221 Fax: (604) 222-5690
Eastern Region
319, rue Franquet, Quebec City, (QC) GIP 4R4
Tel: (418) 659-2647 Fax: (418) 659-2922
ISSN # 1916-4238